In this article, we discuss 5 dividend stocks to buy according to James Katz’s Humankind Investments. If you want to read our detailed analysis of the hedge fund’s past performance and latest developments, go directly to read Top 10 Dividend Stocks to Buy According to James Katz’s Humankind Investments.
5. Johnson & Johnson (NYSE:JNJ)
Dividend Yield as of June 28: 2.54%
Humankind Investments’ Stake Value: $2,424,000
Johnson & Johnson (NYSE:JNJ) is one of the oldest multinational corporations that specialize in pharmaceuticals, medical devices, and consumer products. The company’s Janssen unit recently announced that its Tremfya drug has shown improvement in many symptoms of psoriatic arthritis over two years. The patients saw improvement in disease severity, with low rates of radiographic progression.
On April 19, Johnson & Johnson (NYSE:JNJ) announced a 6.6% hike in its quarterly dividend to $1.13 per share. The company has been raising its dividend consistently for the past 60 years. Moreover, from 2017 to 2021, it generated $59.6 billion in free cash flow and paid $49.9 billion in dividends. The stock’s dividend yield was recorded at 2.54% on June 28.
Humankind Investments initiated its position in Johnson & Johnson (NYSE:JNJ) during the fourth quarter of 2020, purchasing shares worth $308,000. At the end of Q1 2022, the hedge fund owned 13,678 shares in the company, worth $2.4 million. The company represented 0.99% of James Katz’s portfolio. In June, Daiwa initiated its coverage of Johnson & Johnson (NYSE:JNJ) with an Outperform rating and a $180 price target.
At the end of Q1, Arrowstreet Capital was the largest shareholder of Johnson & Johnson (NYSE:JNJ), owning stakes worth over $1.1 billion. Overall, 83 hedge funds tracked by Insider Monkey reported holding positions in the company, the same as in the previous quarter. The collective value of these stakes is over $7.4 billion.
Distillate Capital, an investment firm, discussed Johnson & Johnson (NYSE:JNJ) in its Q2 2021 investor letter. Here is what the fund said:
“The largest additions in the rebalance, Johnson & Johnson was around 50 and 40 basis points incrementally. J&J underperformed in the quarter while its normalized free cash flows held steady and so its position size was topped off to match the stable cash flows.”